From Nick Gillespie at Reason:

Interest rates for new subsidized student loans are supposed to double today, from 3.4 percent to 6.8 percent, unless the government passes a fix (as they’ve done for a number of years). Obviously, anybody would want to pay a lower rate than a higher one, but the difference in the monthly payments for $25,000 (about the average amount that students who take loans have out upon graduation) is about $40 a month for the typical 10-year repayment cycle. (Go here for a student loan calculator).

Back in the fall of 2011, Meredith Bragg and I released “3 Reasons We Shouldn’t Bail Out Student Loan Borrowers” (click to watch). Forgiving student loan debt was arguably the leading plea from Occupy Wall Street. It was a bad idea then and remains one now (for a link-rich argument, go here). The short version: These loans are voluntary, the average payment amounts are hardly overwhelming (especially when increases in lifetime earnings are factored in), and bailouts are never a good idea. 


Don’t Sweat Student Loans! – Hit & Run :

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